Parliament worried about impact of record fuel and electricity hikes

Parliament worried about impact of record fuel and electricity hikes

Parliament has expressed its concern over the record increase in fuel prices that came into effect on Wednesday – a week after sharp electricity tariff hikes also hit consumers.

Fuel prices expected to drop
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Chairperson of the Portfolio Committee on Mineral Resources and Energy, Sahlulele Luzipo, says Parliament recognises that some issues are beyond the domestic control like oil prices.  

 

However, he adds the concern is the ripple effect these increases will have on already over indebted and struggling consumers.  

 

"You will recall as soon as you have fuel hike the potential of the value chain in term of the cost implication is very high, whether in relation to transport, food and mining costs," says Luzipo. 

 

He adds that the country's economy has also not yet recovered from the Covid-19 devastation.

 

Luzipo also expressed concern over the electricity tariff hike. 

 

"With these effects the implications to the poor are going to be dire," he says. 

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